FIFA Perspectives
Feb 2016
Positive role of women IFAs in long term Wealth Generation through Mutual Funds
FIFA takes pleasure to bring to your notice that two of FIFA’s Founder Members and Directors on the Board of
Director have been featured by Economic Times --- as Independent Wealth Managers who have grown the assets
of many families over the last 15 years.
They truly symbolise new spirit of entrepreneurship and represent the yeoman services IFAs across the country
provide in channelizing household savings that generate development funds for India as a nation on a move. FIFA
offers kudos to them. "
FIFA Perspectives brought to you by Wealth Forum
FIFA Perspectives
Feb 2016
Events in Feb 2016
Delhi
Towards reactivating the activities of FIFIA in Delhi and the North, FIFA organised our maiden session for 2016
with our founder member Mr. Mukesh Dedhia, Director of Ghalla & Bhansali Securities Pvt Ltd in Delhi on 29th
Feb 2016 on the subject of “Goal setting through Path of Discovery”.
Mr Mukesh Dedhia made us introspect- this session was about us, our dreams- fulfilled, unfulfilled, our
weaknesses- shortcomings, jealousies, expectations, our capabilities.
He made us laugh, cry, feel sorry, feel good, he made us want to spell out our desire for the future- business,
clients, friends, family.
He spoke of the need to let it go, forgive - including our own inadequacy.
All in all a nice restart of FIFA activities, participants participated freely in the proceedings, and enjoyed in the
session. Mr Bhatia our youngest member at 64 years of age, handed over a souvenir to Mr Mukesh Dedhia!
FIFA Perspectives brought to you by Wealth Forum
Events in Feb 2016
FIFA Perspectives brought to you by Wealth Forum
FIFA Perspectives
Feb 2016


Happenings

Charlie Munger and Warren Buffet have finally decided to enter the 21st Century .
Their AGM which attracts 40000 visitors from across the globe will this year be webcast
worldwide in its entirety.
To view the meeting simply go to https://finance.yahoo.com/brklivestream at 9.00am Central
Day Light time on Saturday, April 30th.
The Yahoo! Webcast will begin with a half hour of interviews with managers, directors and
shareholders.
Then, at 9.30, Charlie and Warren will commence answering questions.
It will be a great opportunity for millions to hear the Oracle of Omaha live.

GLOWING IN THE WIND- Times of India, 1st March 2016
A cold draft of economic uncertainty is sweeping across the world. The BRICS nations, which once fired up global
growth, have caught a chill all except `I'.
With China losing its glow after nearly three decades of red-hot expansion, India burns brightest among the large
economies. But with the markets dimming, banks slipping into an area of darkness, exports melting, and
consumer demand flickering, the nation needs oxygen in the form of bold reforms and visionary policies to keep
the flame alive. Does this Budget achieve the objective of spreading warmth and light? Or, is this candle also in
danger of being snuffed out?
But it's bad news for the `rich' as govt shifts focus
FIFA Perspectives brought to you by Wealth Forum
FIFA Perspectives
Feb 2016
Keep taking singles, but go for that occasional six
too!
Ashish Chaddha, Chaddha Investments, Delhi
Last week, we discussed Ralph Wanger's winning investment
approach (The story of a zebra among lions). Major Ashish Chadha one if India's most successful advisors - discusses his take on
Wanger's approach, and how he blends caution and aggression to
deliver a great client investing experience.
Wanger's preference is for hitting sixes, he is not a believer in taking
singles. Ashish is a believer in taking a lot of singles, but always
keeping an eye out for a loose ball that he can smash for a six. His
approach towards the big shots is very similar to Wanger's - and
with the same impact: little wonder that clients love the kind of
performance his portfolios deliver.
Ralph Wanger talks about fund managers who hit for singles versus those who hit for home runs (sixes in
cricketing parlance). Wanger hits for home runs. He invests with multi-baggers in mind - not annual
outperformance vs benchmark. In our business as financial advisors, I think what works best, at least for me, is a
combination of hitting for singles and at the same time keeping an eye for a loose ball that you can hit for a six.
Investment philosophy
Agree with Wanger - you must articulate your core set of beliefs, which will always guide you in your investment
calls. I have three core beliefs that guide me:
1. Do what is right
I pray everyday - I keep a leaf from the Bodhi tree in Gaya to keep my balance, I have this Hebrew prayer
overlooking my bed to not be a mercenary and do Good, a sura from the Sura Naash in my Dining Room which
tells me to keep the demons of my heart and mind in check, and the National Defence Academy prayer to the
Lord - Help me to choose the Harder right than the easier wrong! And the Gita says Keep your Karma right - so no
buying something for anyone else if you don't want to buy it for yourself and your family! Anytime I violate any of
these commandments I screw up, else it seems to work? till I screw up. It helps to have a father who did not let
me become an agent of Hoffland Finance as it was paying 10% commission, an uncle who held stocks for 60 years
and his family continued the tradition and a team which is generous enough to worry about high markets!
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Keep taking singles, but go for that occasional six
too!
2. Mean reversion is the eternal truth
In the military, we greet each other every morning with "Sat Sri Akal" - Truth is the eternal God. For markets, the
eternal truth is mean reversion. Valuations are real, valuations don't lie. Whenever markets or a segment of the
market gets too far away from the mean, it will eventually revert to the mean - no matter what people say about
why it must remain where it is.
If you sell what the market is selling, the pundits are advocating, media is Tom toming, tongue firmly in cheek the
young 25 year old banker is showing a 30 pc return and the client's brain has been fixed and thinks to herself "15
toh aaa hi jayega" - you are no different. At that stage however, if you think sensibly and act judiciously - that's
when you make a difference.
We stopped recommending lumpsum equity funds since November 2014. We built up balances in liquid and short
term funds right through 2015. We even stopped SIPs in midcap funds since 2015. We had across the board sell
calls all through Dec 14, asked clients to take out money and go on a vacation. Back in Nov 2014, we saw two
things that made us uncomfortable: market valuations were 22x and above, with no near term sign of earnings
growth. Second, the flood of NFOs on the back of huge 6 and 12 month performance, was a danger signal for us.
Mean reversion had to happen. We stayed away from equity.
We lost some business in 2015 when everybody tried talking up the market, but it refused to oblige. "Ashish toh
equity mein mana Kar raha hain ki return nahin ayega, bank is saying 30 pc market mein return hain and they
have a scheme which is closing in 10 days… Ashish toh agent hain, Pata nahin hain, conservative hain, kah raha
hain midcap nahin khareedne ka hai, bank ke log kitna smart chhe, economy ka poora janta hain! "
I love this cycle - there is pain of losing business when you stay with your convictions, but when mean reversion
happens - as it always does - you create clients for a lifetime. 2015 was a bad year for us in terms of income - you
don't make anything by keeping client money in liquid and short term funds - but I think it will turn out to be a
great year for us from a long term perspective, as we chose to stay away from the herd, follow our convictions
and do what we believe is right for our clients.
3. Asset allocation is the default strategy
Asset classes going into extreme valuations does not happen every day. When it happens, you must believe in
mean reversion and take necessary portfolio action. But for all other times, asset allocation is the mantra to swear
by. Plug your ears to what everybody is saying, plug your ears to all sales pitches, don't pay any attention to
media hysterics - nobody can predict the future. Asset allocation is the only truth. Keep an eye on valuations they never lie. Decide on over or under allocating to an asset class whenever you see valuations going to
extremes, either way. All other times - stick with your asset allocation. We are the serpent which guards our
clients' treasures - we better do a good job of it by correct asset allocation.
FIFA Perspectives brought to you by Wealth Forum
Keep taking singles, but go for that occasional six
too!
Keep taking singles, but look out for the occasional six
I agree with Wanger's idea of looking at macro trends and trying to find ways to play the trend correctly. We've
been doing this for years - and we've got lucky with some of our calls. Back in 2009, when there was the
proverbial "blood on the streets" we took two significant calls which nobody was talking about at that time - we
advised clients to invest in the PineBridge Infrastructure Fund and Mirae Emerging Bluechip Fund. Infra and
midcaps - these were the most beaten down, held significant promise, and after looking at different schemes, we
settled on these two as the best fund managers to play these themes. The rest as they say was history.
In 2011, we looked at the macro situation.We were convinced that the rupee will fall and wanted to identify a
sector that will be immune to this. Banks came up as a thought, but rising NPAs was a challenge that didn't give us
comfort. Auto and auto ancillaries was a segment that we developed conviction in - the sector was globally
competitive, didn't require Government influence to drive its profitability, had a healthy mix of exports and
domestic consumption, and was attractively valued. There were at that time only two sector funds that played
this theme - we got clients to invest in UTI Transportation Fund. That turned out to be a big winner for clients. We
have been advising clients for years to invest in US Equity Funds - and they have done very well for clients - with
the US market rising and the rupee falling through the last 5 years. We follow a military operations way of
functioning, we discuss ideas collectively and if one colleague shoots down an idea, we think through and delay a
decision. There is no ego in being told off by a colleague!
Hitting sixes helps client portfolios show healthy returns, but we never go overboard with hitting sixes. Each of
these calls would not be more than 5% of client portfolios. Bulk of the portfolio will remain in asset allocation
mode, but from time to time, looking at trends, spotting opportunities and taking courageous calls has helped us
deliver a good client experience.
Content is prepared by Wealth Forum and should not be construed as an opinion of HDFC Mutual Fund.
FIFA Perspectives brought to you by Wealth Forum
FIFA Perspectives
Feb 2016
Snippets
CORPORATE DOSSIER
Competitive Strategy
(Michael Porter,Havard University)
Now nearing its sixtieth printing in English and translated in to nineteen languages , Michael Porter's Competitive
Strategy has transformed the theory, practice and teaching of business strategy throughout the world ,
Electrifying in its simplicity, in depth and substance with a touch of class.
In continuation, let us walk the talk with Michel Porter, Strategy Guru. A few pointers
* Strategy to create competitive advantage i.e., advantage over competitors.
* Competitive advantage grows out of the value a firm creates for its buyers. Competitive advantage creates '
value chain'.
* Competitive strategy must grow out of understanding Rules of Competition.
* Rules of the game are embodied in ' Five Forces Model ', as exhibited.
Porter's five forces analysis
a. Potential Entrants : Threat of New Entrants
b. Buyers : Bargaining Power of Buyers
c. Suppliers : Bargaining Power of Suppliers
d. Substitutes : Threat of ' substitute' products
e. Industry Competitors : How Competitors Compete
FIFA Perspectives brought to you by Wealth Forum
Snippets
Porter's five forces analysis is a framework that attempts to analyze the level of competition within an industry
and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that
determine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context
refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five
forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure
competition", in which available profits for all firms are driven to normal profit. This analysis is associated with its
principal innovator Michael E. Porter of Harvard University.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or
services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical'
competition: the bargaining power of suppliers and the bargaining power of customers.
 One can relate this to competitive landscape in MF Industry, AMCs, Fund Houses, National Distributors, Banks,
IFAs.
 Go easy. Go slow. Take time to reflect and enjoy like a fiction. All the real stuff.
 FIFA NL, March, we shall revisit Prof. C K Prahalad, Ross B-School, University of Michigan, Ann Arbor. : “The
Future of Competition: co-creating unique value with customers ".
We invite Members to solicit new Membership and invite viewers to register as Members. For details and
registration forms, please visit FIFA Website: www.fifaindia.org
FIFA welcomes its new members
M Type
Membership
Type
Name of Organisation/ IFA
Representative(s)
NAME
CITY
Ordinary
O200
Indv
Tushar Jitendra Shah
Tushar Shah
MUMBAI
Founder
F44
N.Indv
Krushna Finserv LLP
Sanjay Khatri
MUMBAI
Life
L15
N.Indv
S J Investment Services Pvt Ltd
Pratap Trivedi
MUMBAI
Life
L16
Indv
Nilesh Ramnikar Ghia
Nilesh Ghia
Mumbai
Founder
F45
N.Indv
Power Pusher Financial Services LLP
Hanoz Patel
MUMBAI
Zubin Patel
Founder
F46
N.Indv
Param Wealth Managers LLP
Rahul Ajit Khatri
MUMBAI
Founder
F47
N.Indv
Fortune Money Management Services
Parekh Chandrakant
MUMBAI
Ordinary
O201
Indv
Vaibhav Ankush Rane
Vaibhav Rane
Mumbai
Ordinary
O202
Indv
Lobo Franky
Lobo Franky
Mumabi
Ordinary
O203
Indv
Piyush Kalyani
Piyush Klayani
Mumabi
Ordinary
O204
Indv
Devdutta Dhankokar
Devdutta Dhankokar
Mumbai
Ordinary
O205
Indv
Falguni Shah
Falguni Shah
Mumabi
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